Filing for bankruptcy is legally claiming that a person is not able to pay off their debt or bills. Filing for bankruptcy may not be the right option for everyone. However, it can help the bankrupt party get relief from their creditors by dissolving interest fees. Before filing for bankruptcy in Fairfield, OH consider these four things:
Parting With Belongings
Liquidating non-exempt assets is one thing that occurs when filing for bankruptcy. Non-exempt assets include things like cash, a second house, investments, and cars. Assets may be seized by a court-appointed trustee. Once it is seized by a trustee, it will be sold off to pay those that are owed. If having items taken away is a major issue, filing for bankruptcy may not be the best for your individual situation.
Paying for Bankruptcy
The cost for filing chapter 7 may be an issue, especially if there is already a struggle paying off debt and bills. The fees associated with submitting paperwork to the courts can cost anywhere from hundreds of dollars to thousands of dollars. For someone who is already struggling financially, filing for chapter 7 may not make a lot of sense, and it may just tack on a lot of extra expenses.
May Ruin Credit
It’s no surprise that filing for bankruptcy can taint or even completely ruin credit. The mark will be left on your credit history, and that mark will last for ten years. When this occurs, it can be very difficult to get a loan or reasonable interest rates. Trying to get a new credit card will prove to be nearly impossible.
Possible Alternatives
Consider alternatives and try to take steps to reduce debt without actually filing. For example, are you able to get a second job? Can the debt be settled for less than is actually owed? Can money be borrowed from a friend or family member to pay off the debt? Can a debt-management program help the situation? These are some questions that should be pondered before deciding to file for bankruptcy. It is also wise to visit with a certified credit counselor to see what other alternatives are available.
Before filing for bankruptcy in Fairfield OH, it is important to think about long-term consequences and to visit Dean Snyder, attorney at law, to see what other options are out there.
